InsurTech - Information Technology and Digitalization in Insurance (Cyber Insurance and Telematics Data)

Blockchain in insurance

Main article: Blockchain in insurance

Digitalization of insurance companies

2024

How much do Russian insurance companies spend on digitalization

Russian insurance companies spend up to 10% of the total collected premiums on digitalization. This became known in mid-September 2024. In absolute terms, this amounts to up to ₽230 billion annually. The main expenses are aimed at the development of electronic services, ensuring information security and the import substitution process.

According to data collected by analysts from Expert RA and the Reksoft technology group, the Russian insurance market is largely focused on introducing advanced IT solutions, which allows companies to successfully compete in the market and retain customers.

Russian insurance companies spend on digitalization

According to Kommersant, the study, which covered 50% of the market, showed that on average companies spend from 5% to 10% of their premiums on IT infrastructure. Amid high competition, insurers are actively investing in mobile applications, artificial intelligence and voice assistants, as well as predictive systems. According to Konstantin Smirnov, Commercial Director of the Department of Analytical Solutions at KORUS Consulting, about 30% of companies consider the creation and development of ecosystems to be the most important area for improving their efficiency.

A lot of attention is paid to information security - this industry stores significant amounts of personal data of customers, which makes protection against leaks and cyber attacks a priority for insurers. The main IT budget expenditures include the purchase of equipment, remuneration of internal developers and support for corporate information systems. Under the conditions of sanctions pressure and the need for import substitution, companies are forced to increase the cost of developing their own solutions and increasing the staff of IT specialists.

In addition, the cost of digitalization of insurance companies increases annually. According to AlfaStrakhovanie, in 2024 the growth of IT costs amounted to about 10-15%, and this trend is expected to continue. Market participants predict an increase in IT budgets by 10-20% in the coming years, which is associated with the need to maintain and develop already implemented IT systems.^[1]

NSIS will launch a system for identifying the facts of double insurance

JSC "National Insurance Information System" (NSIS, operator of AIS Insurance) will launch a system for identifying the facts of double insurance carried out for the purpose of fraud. This was announced on June 4, 2024 by the head of the company Nikolai Galushin. Read more here.

How digitalization is taking place in Russia in the settlement of insurance claims

In April 2024, Rosgosstrakh spoke about the peculiarities of digitalization in the settlement of insurance events, as well as the difficulties faced by insurance companies in the implementation of such projects.

According to Arman Gasparyan, head of the Rosgosstrakh IC Loss Settlement block, insurance companies need to solve three main problems as part of the digital transformation of their business:

Rosgosstrakh spoke about the peculiarities of digitalization in the settlement of insurance cases

• Improving the quality of decision-making, as digital technology allows you to more accurately determine the amount of insurance coverage to be paid and helps avoid disputes with customers, as well as identify fraudsters through scoring models;
• Optimizing internal costs by automating, reducing errors, and using electronic document management
• development of client experience. According to a McKinsey study, the potential for increased customer satisfaction (so-called CSI or Customer Satisfaction Index index; it shows the degree of customer satisfaction with the company) when introducing digital technologies in insurance can be up to 20%.

Gasparyan notes that Rosgosstrakh recorded a 25% increase in the CSI indicator in 2023 in the settlement of insurance claims, which was largely facilitated by the use of information technologies. According to the top manager, almost a third of insurance claims on Casco will be settled completely along the digital path in Rosgosstrakh. However, at different stages of this process, the level of digitalization may differ significantly for a number of reasons.

Arman Gasparyan says that effective digitalization tools in resolving losses are the Internet of Things, preventive information mechanisms, integration with external databases, the creation of predictive event models based on Big Data analysis and the formation of a client path depending on the client's digital profile.

Gasparyan notes that digitalization is possible at 90-100% of the stages of settlement of insurance claims, but there are some restrictions related to the level of technology development. for example, for the initial stage - filing an application for an insurance event - the quality of the mobile Internet and the age of the client can be a problem. In the case of the most difficult stage for digitalization - inspection of a damaged vehicle - the limiting factors will be hidden damage and weather conditions (lighting, street dirt, etc.).

The complexity of digitalization of the stage of recognizing an event as an insured event, according to the representative of Rosgosstrakh, may be due to the fact that checking an event requires a huge number of options to be included in the algorithm, and integration with a large number of external resources (for example, traffic police bases, BKI, FSSP, etc.). In addition, the need to control the avoidance of fraudulent schemes forces the insurer to limit the limit of payments in a digital settlement to a certain amount, Gasparyan continues.

He associated the difficulties of digitalization of the stage of calculating the cost of repair with the quality of self-inspection and the level of development of artificial intelligence that recognizes damage and documents on photography. Finally, for digital recording to the auto maintenance and repair control station, the main limitation is the involvement of partners in the process. It is easiest to digitalize the last stage - the formation of an insurance act and the implementation of an insurance payment, added a top manager of Rosgosstrakh.

2023

The volume of the Russian cyber insurance market has grown to ₽1,3 billion

The volume of the cyber insurance market in Russia in 2023 reached ₽1,3 billion. This became known in mid-October 2024 from the assessment of the insurance broker Mainsgroup.

In 2024, this segment is expected to grow significantly - more than twice. It is predicted that the market size may exceed ₽3 billion. Such a forecast is based on regular surveys of market participants, including insurers, customers and companies specializing in cybersecurity.

The volume of the Russian cyber insurance market increased to ₽1,3 billion

According to Kommersant, cyber risk insurance protects businesses from threats related to Internet use, data storage and processing, as well as working with IT infrastructures. The policy typically covers losses resulting from cyber attacks, including cases using social engineering techniques, disloyal employee actions and technical failures.

According to Sergey Khudyakov, co-owner of Mainsgroup, insurers are showing interest in cyber insurance, since it is a free, unformed market with minimal competition. At the moment, five companies offer insurance against cyber risks: Sberbank, Alfastrakhovanie, SOGAZ, VSK and Ingosstrakh.

Ilya Shalenkov, head of the Kept cybersecurity services group, notes that many companies have realized the need for additional ways to reduce information security risks. In addition, they are ready to demonstrate to insurers the level of their processes and protection measures to obtain an adequate amount of insurance premium.

Experts point to a number of factors contributing to the growing interest in cyber insurance. Among them are the activity of hackers and the increase in the number of cyber attacks. According to the Ministry of Internal Affairs, the damage from cybercrimes in Russia at the end of 2023 amounted to ₽156 billion.^[2]

Insurance companies in Russia obliged to introduce new software to switch to new reporting standards

As of the end of 2023, less than half of Russian insurers were able to develop or purchase software necessary to maintain calculations and accounting under IFRS 17. The introduction of the new reporting standard is accompanied by a number of difficulties, as stated in a study by the B1 group of companies, the results of which were published on December 14, 2023.

The survey involved more than 25 companies specializing in various types of insurance, organizations that are part of large banking groups, and independent market participants. It is said that the transition to IFRS 17 requires the introduction of new software. However, by the date under consideration in Russia there are problems with obtaining the necessary software, high prices for it, as well as the lack of interest of market participants.

About a third (34%) of insurance companies reported that in the current situation they could not decide on the choice of settlement and accounting solutions. Another problem is the need to allocate a significant budget for the project for the implementation of IFRS 17 - this was also indicated by every third respondent. At the same time, 53% of respondents estimated the budget for the implementation of the new standard over 60 million rubles.

It is said that by the end of 2023 in large insurance organizations with fees of more than 50 billion rubles, the average percentage of completion of work on the transition to IFRS 17 exceeds 50%. In companies with fees of less than 15 billion rubles, the figure is less than half.

An analysis of foreign experience in the transition to IFRS 17 shows that a year before the date of the first application of the standard, the bulk of companies were in the active phase of implementing IT solutions. Exactly a year remains until the date of the first application of the standard on the Russian market - January 1, 2025. Thus, the companies do not have much time to complete projects to switch to IFRS 17 and IFRS 9, - said Tatyana Samsonova, partner of the B1 group of companies.[3]

Developed digital platform "Агростраховка.рф" for farmers

Agroholding "Delivery by Sea" on July 21, 2023 presented the Агростраховка.рф platform for farmers with the support of the Ministry of Agriculture. The program allows you to insure a large list of crops and perennial plantings. Moreover, it will contribute to the development of framework relations between farmers and large buyers of their products. Read more here.

2022: A robot for automatic settlement of insurance claims began to be used in Russia

In Russia, a software robot for automatic settlement of claims in the field of insurance began to be used. We are talking about the development of "Innoseti," which was launched on the flagship platform of the company "Tsunami." This became known at the end of August 2022. Read more here.

2021

40% of insurance companies are present on 10 or more marketplaces

The SDI360 Digital Audit Agency and the Выберу.ру financial marketplace have studied how actively insurance companies use marketplaces for sales and what products they place there. The results are presented in a study of the digital maturity of the insurance market SDI360 with the support of the general partner of the digital integrator D'Terra. This was announced on September 19, 2022 by the Выберу.ру company.

At the end of 2021, the volume of online sales of insurance companies on marketplaces increased by 50%. The main reason for the growth is the overflow of the audience to online platforms. About a third of consumers on the market are ready to change the insurance company and look for more profitable offers on the Internet. When choosing an insurance policy on the marketplace, the savings can be several thousand rubles.

The digital maturity study evaluated the presence of insurance companies on 11 of the largest marketplaces and online aggregators. They are used by 26 companies out of 30. 12 are presented at 10 or more sites. 8 insurers use all marketplaces: SOGAZ, Rosgosstrakh, VSK, Renaissance Insurance, Consent, Tinkoff Insurance, MAKS and Zetta Insurance.

Most products on marketplaces are placed by Renaissance Insurance, AlfaStrakhovanie and Zetta Strakhovanie. OSAGO is the leader in the number of placements: 108 products in total at B2C sites, 131 at B2B.

B2C-platforms

B2B-platforms

The leaders of the overall rating of digital maturity are:
1st place - "Ingosstrakh" (295 points, of which 100 in the online sales category).
2nd place - VSK (270 points, 110 of them in the online sales category).
3rd place - AlfaStrakhovanie (260 points, 90 of them in the online sales category).

The rating was formed from 30 non-life segment insurance companies. It was estimated that there was an opportunity to purchase the company's product on the marketplace or leave an application for registration there at the time of the study (from July 15 to July 30, 2022). B2C-Marketplaces ("Выберу.ру," Sberbank marketplace), B2B resources (Polis.online, Pampadu, "PKASKO," Inssmart) and complex B2C/B2B platforms ("Compare," "Банки.ру," Mafin, Cherehapa, "Financial Services") were chosen as insurance online platforms.

Among the key reasons for the growth in sales on insurance marketplaces and aggregators is the increase in the number of users: both direct customers and agents. Platforms are actively promoting not only their own brands, but also the very idea of ​ ​ online comparison and choice of insurance products in one place. Search engines prefer sites with a large range of products. Agents began to use online services more often, since it is convenient from the point of view of automation of manual processes and provides additional opportunities, - said Grigory Burdenko, General Director of the financial marketplace "Выберу.ру."

Online sales are one of the three key blocks in our methodology for assessing the level of digital maturity. In addition to the representation of insurance companies on marketplaces, we assessed the possibilities of choosing products on the insurance company's website, the quality of the online questionnaire, as well as payment and delivery services. The results of our rating show that leaders really sell more online than outsiders, "added Aleksei Romanov, managing partner of the SDI360 Digital Audit Agency.

Experts from Vinci Agency (Vinci Digital Agency), Ashmanov and Partners, Sidorin Lab, Salo and Medialogia also took part in the study of the digital maturity of SDI360 insurance companies.

Insurance payments for risks associated with ransomware viruses in the world increased by 4 times

According to Cybercrime magazine, the global damage programs extortioners from the end of 2021 will reach $20 billion, while back in 2015 this figure was $325 million. The amount Attacks viruses of money added to enterprises in the world occurs every 11 seconds. The pandemic played an important role in this, coronavirus which provoked a sharp increase in the use of online services. This became known on November 23, 2021.

Everyone who could went remote operation, to and behind this is the use of home networks, the connection of other devices to workers - to computers the risks of cyber attacks have grown. Many say that 2020 and 2021 will be remembered not only because of the pandemic in the system, health care but also the cyber risk pandemic, a digital pandemic associated mainly with ransomware viruses, - said the head insurance financial of the risk department. AIG JSC Igor Chichkan

According to him, over the past year and a half, average insurance payments for risks associated with ransomware viruses in the world have increased 4 times, and the number of Internet attacks is growing from quarter to quarter. All this led to a surge in demand for insurance.

There is a huge imbalance in the global cyber risk insurance market: both demand and losses are growing. This negatively affects the appetites of insurers, - commented Chichkan, - Insurance capacities have dropped sharply, and premiums have increased in order to somehow compensate for the difference between fees and payments. Globally, cyber risk insurance for many companies over the past two years is likely to be unprofitable.

In some cases, tariffs rise by 50% or more. In addition, insurers around the world began to exclude risks associated with ransomware viruses from contracts, as well as switch to co-insurance conditions, when the client himself pays half of the loss.

Those customers who have just thought about cyber risk insurance are faced with a lack of supply from insurers, a small amount of coverage and high tariffs, - said the head of the financial risk insurance department of AIG JSC.

The underwriting system began to play a critical role for insurance companies. There is now a growing demand worldwide for new and innovative ways to assess and manage cyber risks, according to AIG's global director of underwriting Lex Baugh. Specifically, Baugh expects AIG and underwriters to rely more "on externally acquired data that will provide insights into cybersecurity systems and potential customer vulnerabilities."

These are two different universes, parallel worlds, - said Igor Chichkan. In America, cyber insurance appeared 25 years ago and evolved. Right now, personal cyber risk insurance is gaining momentum there. It is wider than bank insurance and covers the risks of personal data leakage, the failure of a home computer, the Internet and smart devices as a result of attacks.

The main driver of the growth of cyber insurance in Russia is contractual obligations. For companies working with foreign contractors, having a policy is often a prerequisite. Companies purchase insurance limits that are required under the contract, as a rule, these are amounts in the amount of $1 million to $10 million.

Russian customers have not yet matured the internal need for cyber risk insurance. The lack of budgets for this, together with limited limits and the growth of insurers' premiums, do not contribute to the development of this market segment. Many of our customers argue in the spirit of "we will spend better on IT security than on buying an insurance policy. I think that even in a situation of high costs for IT security, it is worth providing for a certain budget for cyber risk insurance, since in the event of an unfavorable development of the situation, it will help mitigate the consequences, the expert summed up.

Most insurers favor traditional communication channels

On January 18, 2021, TWIN presented a study of the most common communication channels in Russian insurance companies.

The Russian insurance companies prefer traditional calls and rarely use messengers them to communicate with customers.

Analysts of the TWIN dialogue platform studied the communication channels used by 9 Russian insurance companies (IC). Experts found out what methods of communication are available to customers on the websites of service providers, and also assessed the waiting time for the operator's response and the convenience of services. The study included platforms that offer a service for issuing an electronic auto insurance policy (e-OSAGO).

Most companies (89%) provide the client with the opportunity to independently contact the insurance service by phone - the call center number is indicated on the website. Only 67% uses the phone number "8-800" for this - it allows the client to make incoming calls for free, regardless of the region of residence and the operator's tariff. Also, all SCs included in the study offer an interactive voice menu (IVR) option that simplifies call routing in the call center.

At the same time, only 22% of companies provide customers with a short extension for communication - most do not have such an option.

TWIN experts also found out how much time it takes on average for a client to wait for an operator to answer during a call. The best result was demonstrated by Zetta Insurance, which took only 37 seconds to process the request. Overall, the average waiting time for a response in insurance companies was 2.1 minutes. The record maximum while waiting for the operator's response was 9 minutes 12 seconds - it took Renaissance Insurance so long to connect the client with the operator.

The study also found that most insurance companies prefer traditional communication channels - other options are less common. Thus, 55% of the UK processes customer requests in the messenger, Facebook 45% - in, and Vkontakte 22% of companies use for communication. social network Schoolmates

Messengers as a communication channel with customers are used even less often: 11% offers a communication option in Telegram, and none of the nine companies provides a contact number for communication in Viber and WhatsApp. At the same time, according to statistics, the most popular messengers in Russia in terms of the number of installations and active users are just WhatsApp and Viber. Communications in instant messengers and social networks on the insurance company's website are also rare - so far none of the nine UK has connected such an option.

The TWIN study points to the conservative approach of Russian insurance companies to communications with customers - most still use traditional channels and do not experiment with other formats. At the same time, the demand for mobile telephony in Russia is steadily decreasing - people are increasingly preferring instant messengers both for making calls and for exchanging messages.

2020:90% of large insurance companies prefer a call to a customer as the main way to communicate

SDI analytical consulting agency on December 7, 2020 provided a report on the results of a study of the level of digital maturity among the leaders of the Russian insurance market. In 2020, 90% of companies still use mobile communications as the main way to communicate with the client, despite the increase in the activity of the Internet audience, according to the report.

2020 allowed global business to change its approach to implementing marketing strategies. Active communication with the client through digital channels has become not only a panacea in the crisis period, but also opened access to online sales for those whose business processes are associated only with offline activities. Nevertheless, the results of the study show that despite the general growth of the audience on the Internet and, as a result, the growth of online transactions (1.7 trillion rubles), interaction with the consumer on the network is not a priority for insurance companies.

"The overall level of digital maturity of Russian insurers remains quite low, in our opinion, this is due not only to small investments in the development of digital interaction with the consumer, but also to difficulties in resolving losses online. Most companies still offer customers to come to the office in person, this limits the possibilities for scaling the business, "says Alexander Kuksa, co-founder of SDI.

Only 10% of representatives of the Russian market have high digital activity - these are large federal companies. According to experts, regional players from the SME segment cannot yet compete in this indicator with market leaders. The representation of insurance companies on the Internet remains limited, and the online presence is 99% reduced to sales of OSAGO or VZR (insurance of persons traveling abroad). Other products are sold through other channels: for example, through partners, including banks, car dealerships, brokers and agents. In turn, sales of insurance companies by their own channels do not exceed 10-15%.

The study also found that approximately 90% of companies in 2020 still prefer to interact with the target audience through phone calls and only 11% provide an opportunity for the client to contact via chat messenger. According to experts, since the beginning of the pandemic, only 6% of companies have opened a courier delivery service for insurance products.

"Russia's Internet audience is 79% of the country's population. Without adapting services for mobile devices, companies cannot fully interact with their customers now and will not be able to in the near future. Kuksa noted. "Insurance companies do not want to turn into impersonal backoffice food factories, so growing the share of direct sales is a strategic goal for many large players, which means that online activity is expected to grow, because this is the easiest and cheapest way to be close to the client."

In 2020, Ingosstrakh, Consent and Renaissance Insurance became the leaders in the SDI360 ° rating.

2019: The level of digitalization in more than 30% is estimated by 37% of insurance companies

Insurance companies in Russia are quite optimistic about the level of their digitalization. Thus, the level of digitalization of its activities is estimated at more than 30% by 37% of insurance companies in Russia.

This was announced in June 2019 by the head of the Department of Insurance and Economics of the Social Sphere of the Financial University under the Government of the Russian Federation Alexander Tsyganov at the second all-Russian scientific and practical conference "The first results and drivers of the further development of digitalization of the insurance market in the Russian Federation"^[4].

As Alexander Tsyganov told with reference to the research data of the Department of Insurance and Economics of the Social Sphere of the Financial University under the Government of the Russian Federation, almost all insurance companies today use the technology of "internetisation of business processes" (93% of respondents). Half of insurers claim to use big data technology (57%) and new manufacturing technologies (47%). Wireless technology uses 40% and artificial intelligence technologies of 30% of insurers.

Other new digital technologies listed in the program of the Government of the Russian Federation "Digital Economy," including blockchain technology, according to Alexander Tsyganov, are practically not used by insurers.

"Insurers who took part in the survey are quite optimistic about the level of digitalization of their activities (the ratio of business processes using new digital technologies to the total number of business processes). Thus, the level of digitalization of its activities over 30% is estimated by 37% of respondent insurers. At the same time, another 37% of insurers believe that their level of digitalization is in the range of 5-20%, "said Alexander Tsyganov.

As Alexander Tsyganov noted, a high share of online sales of insurance services, especially in the OSAGO segment, as well as the professional affiliation of the majority of representatives of insurers filling out questionnaires to IT departments, could have influenced the high assessment of the level of digitalization of their own activities.

Half of insurance companies as the main reasons for the low level of development of digitalization of insurance activities, according to Alexander Tsyganov, indicate the high cost of new digital technologies (50%); lack of demand for digitized insurance programs (47%); insufficient adaptation of digital technologies for insurance services (47%).

2018: CIO Ingosstrakh on TAdviser SummIT - about IT priorities in the insurance industry

At the TAdviser SummIT conference held on May 30, 2018 and bringing together a total of more than 600 participants, an open interview was held with Alexei Klepikov, Vice President for IT at Ingosstrakh. Answering questions from TAdviser editor-in-chief Alexander Levashov, he highlighted his vision of trends in digitalization, IT priorities in insurance and spoke about a number of projects in Ingosstrakh itself.

According to Klepikov, at present we can talk about three main trends in the field of digitalization:

• entry of technologies into the clouds, including the emergence of fully autonomous cloud DBMS that work without human participation, in particular Oracle 18c - a representative of a new generation of systems;
• artificial intelligence is a topic directly related to the first trend, since a person does not administer an autonomous DBMS, in addition - speech analytics, chat bots;
• using Agile methodologies on a large scale, it doesn't matter which ones - SCRUM, Kanban, etc.

Speaking about the latter, Alexey Klepikov noted that in Ingosstrakh itself, the use of Agile methodologies began in 2016. However, in 2018, after analyzing the results of the work, it became clear that the implementation of a more comprehensive approach was needed, and in April the implementation and use of the SAFe (Scaled Agile Framework) methodology began, which solves the problems of Agile scaling.

There will be a large increase in online sales of insurance products, partner programs, work with aggregators, and there will be new types of insurance - for example, drone owners, insurance of IT assets, - said the representative of Ingosstrakh, speaking about the impact of trends directly on the insurance industry.

Answering a question about IT priorities, Alexey Klepikov noted that there are business tasks and there are IT tasks that should support the business. Among the IT priorities for his company, he identified three main ones. The first is to create the fastest, most scalable IT infrastructure. And cloud technologies in this context provide great opportunities, in particular, when deploying test environments.

Online sales through digital channels, without the participation of agents, for Ingosstrakh today account for "a couple of percent," Klepikov said. Reaching new levels of digital business is very important for the company, he stressed, so in 2017 Ingosstrakh's website and mobile application were completely redesigned, and a new CASCO online insurance product was created without a visit to the office, when a remote inspection of the facility is carried out using a special mobile application IngoMobile.

The second important priority of the company's development is the full involvement of IT specialists in the processes of the business customer, which involves proactive proposals from the IT business. And in this context, the third priority is the creation of cross-functional teams for the purpose of implementing projects in order to eliminate situations of misunderstanding of business and IT.

During the interview, the topic of using outsourcing services was raised. The representative of Ingosstrakh stated that as of the end of May, the company has more than 340 IT specialists, and that a successful business requires the right adaptable combination of outsourcing and insourcing. This will ensure optimal time to market.

In conclusion, Alexey Klepikov focused on the fact that insurance is greatly transformed in the future, but, despite all the innovations, agency and partner networks "will never disappear."

The TAdviser SummIT conference was held in Moscow on May 30, 2018 and attracted more than 600 participants. The main topics of the event were to increase the efficiency of business and the state using digital technologies. Representatives of large customer companies and the public sector presented the best practices for using IT in their organizations, and IT solution providers presented their new developments. Within the framework of the plenary part and five thematic sections, more than 60 reports and public discussions were heard. The event was held in 5 halls of Digital October.

2017

Information security in banks and insurance companies (TAdviser and VMware study)

The company VMware presented in December 2017 the results of a study of the largest financial institutions conducted in conjunction with the TAdviser think tank. According to the report, more than half (52%) of banks insurance companies Russia and the CIS increased the budget for information security in 2016-17 due to the growth cyber threats and activity of malware. ^[1]

Main article TAdviser and VMware study

Actuarial Modeling Systems

Actuarial modeling - building mathematical models to predict insurance risks and calculate tariffs. Calculating insurance rates is a key task of actuaries in insurance companies, and the accuracy of these calculations directly affects the marginality of the business and the market share of insurance companies. Increased competition in some types of insurance (for example, in the CASCO market) encourages actuaries to look for new ways to improve the accuracy of tariff calculations. After all, those organizations that are the first to start calculating tariffs individually for each of the clients will receive a tangible competitive advantage.

To solve this problem, the Guild of Actuaries analyzed the solutions and industry experience of analytical software vendors, as a result of which experts from SAS were invited as organizers of the workshop.

As part of the practical seminar, SAS experts demonstrated to actuaries how modern methods of machine learning and building predictive models differ from traditional ones, in which situation it is better to use this or that approach and how to use PO SAS to simulate tariffs using algorithms.

Then, SAS consultants, together with actuaries, step by step solved the task of predicting losses under CASCO. In the process of solving, special emphasis was placed not so much on the principles of the algorithms, but on the process of creating predictive models based on them. When comparing various modeling methods, experts in detail revealed how the analyst's qualifications, requirements for the quality and process of data preparation, and assumptions about the statistical properties of the data affect the accuracy of the results. The second part of the workshop was devoted to the current trend of the Russian financial market - the use of additional data from external sources for customers, since practice shows that both in banks and in insurance, data from external sources (such as social networks or data from mobile operators) significantly increase the accuracy of decision-making systems. The effect is especially noticeable in business processes, where the amount of internal information on the client is small. How you can include the interests and life events of policyholders from social networks in the modeling process was clearly shown in a specific example using SAS text analytics technologies.

Insurance market trends in Russia

• Consolidation - more than 65% of insurance volumes are accounted for by the 10 largest insurers
• Nationalization - an increase in state participation in the capital of insurers and the impact on processes (creation of the Russian National Reinsurance Company)
• Activity of the mega-regulator - Central Bank of the Russian Federation
  • Transition to a new RAS chart of accounts - to IFRS
  • Work has begun to convert the insurance reporting system to the XBRL standard

• The formation of a field for electronic insurance sales is the adoption of amendments to the Federal Law "On Insurance." In fact - the transition to a paperless insurance system.
  • In 2016, this "new" sales channel in AlfaInsurance amounted to 2.3% of total fees and its growth rate is 2 times higher than the growth rate of the company's fees as a whole. From the ^[2]

• Since 2016, due to changes in the 40FZ "On OSAGO," insurance companies have the opportunity to sell OSAGO policies electronically.
  • Since 01.01.2017, this opportunity has passed into the responsibility and despite the general unprofitability of this type of insurance, insurance companies have increased the volume of eOSAGO sales by several times - from 2.2 billion in 2016 to ~ 21 billion in 2017 (forecast)
  • At one time, OSAGO became a driver for the development of retail insurance in Russia, eOSAGO has a serious chance to become a driver for the transition of insurance to electronic form
  • The requirements of the Central Bank for the on-line availability of information systems of eOSAGO insurers are such that are not imposed on on-line banking and other public financial services.

IT priorities of insurance companies

• Further expansion of electronic sales channels for retail types of insurance (V2S)
• The main focus of the insurer's work is the Client
  • Development of value-based individual proposals for the client, including the fight against fraud
  • Accordingly - analysis of its needs, behavior in the market and in everyday life
  • Active development of "heavy" analytical systems working with both traditional data sources and "big data" sources
  • Machine Learning and Artificial Intelligence Systems

• Customer's Quality of Service is the second important focus
  • Prompt and qualitative settlement of losses,
  • Value Added Services
  • Insurance cycling = > you need to build the right communications with the customer (unobtrusive reminders, easy payment)

• Expanding the use of Internet of Things (IoT) elements
  • "Black boxes" of telematics in cars - sources of data on both the behavior of the driver and his condition in an accident and the organization of quick assistance
  • Use of gadgets in medicine, telemedicine in voluntary medical insurance

• Use of information of current and future state sources of information through SMEV and/or UIAS
• Optimization of internal costs in insurers - maximum conversion of internal communications "to digital" ("Digitalization," acceleration of changes)

• Transition from the traditional approach in the development of "customer-IT development-system" to "customer (aka developer) - IT quality control-system" (BI, BRMS)
• Wide integration of systems, both with external services (external data sources, including BD, partner and regulator systems), and internally - the transition to API technology for the development of their systems, microservices.
• Increased speed of change implementation - new approaches to internal development and change implementation (Agile, DevOps)

New challenges

• Insurers (like bankers) began to appear competitors in their OWN field, primarily in electronic sales
  • Aggregators are companies that help customers find the best insurance conditions ("customer focus" function).
  • Payment services - "introduced" to us as a payment partner and gradually become aggregators.
  • Telecoms - using their client base, they can and are already starting to act as aggregators, and their potential is very high.

• To paraphrase G. Gref (SberBank) "If earlier it was just a feeling that it was scary, and these guys really start eating our lunch, now the problem for large companies is clearly defined."
• The only thing that so far saves insurance companies is that they not only sell, but also compensate for losses. But this loneliness is temporary.
• Over the horizon:
  • driverless cars (what to do with car insurance?)
  • "smart homes" - a complete change in property insurance of individuals
  • cyber risk insurance - forever
  • blockchain - possible transition to pear2pear insurance or mutual insurance societies

2012: Accenture Study

According to the Accenture survey, 91% of insurance industry analysts believe that the use of technology is critical to the activities of insurance companies. At the same time, more than half of them rate the current level of technology used by insurers as' low'or' in need of improvement '. Today, there are eight main trends that will determine the development of IT in the insurance industry over the next five years.

1. Data platforms that provide seamless access to information. Already, insurers have to work with large amounts of data, and in the future these volumes will grow exponentially. Data can be distributed to different internal and external storage locations in all regions of the world. Insurance companies are faced with the task of maximizing the distribution of existing arrays, including through cloud technologies, if the security and confidentiality requirements allow. Providing widespread instant access to data from any type of device will significantly increase the efficiency of insurers.

For Russian insurers, this trend becomes relevant primarily in the context of building integrated information environments, within the framework of which interaction with partners (brokers, agents, STOA, LPU, AK, NAEB) and customers is carried out. The ability to effectively use information within such information ecosystems allows, on the one hand, to reduce the cost of operational interaction with partners, and on the other hand, to significantly increase the speed and quality of customer service.

2. Analytics tools to improve the efficiency of business processes and better understand customer needs. The customer knowledge provided by predictive analytics is especially important in the face of ever-changing customer preferences. Analytics significantly improves the effectiveness of marketing efforts, allowing you to offer the right products to the client at the right time, reducing the sales cycle and increasing cross-sales. Analytics tools facilitate the implementation of new products. Predictive and behavioral analytics allows you to predict what response a particular product will receive from customers. In the issue of settling losses, the use of analytics helps to diagnose cases of insurance fraud in a timely manner.

As around the world, in Russia there is a great need to use powerful analytical tools in insurance. The main complexity is the poor quality of the data in the source systems. It is not so common to see centralized, fully functional insurance systems that support online operations across the country. More often there are decentralized local installations associated with the periodic replication mechanism and having very ineffective protection against entering incorrect data. Another weak point of analytics in Russia is the lack of infrastructure services common to the entire insurance market, which make it possible to keep records and exchange key information on contracts, losses, etc. The creation of such services will make it possible to qualitatively increase the technological maturity of the market and provide an opportunity to optimize the costs of insurers.

3. Using cloud computing. Cloud computing in the insurance industry has not yet played the revolutionary role it has already played in other industries. The reason for this delay lies in the fact that insurers are often forced to use outdated IT systems that are not always easy to translate into clouds. However, the situation is gradually changing. Obviously, the most significant for insurers will be the use of cloud models of SaaS ('software as a service') and PaaS ('platform as a service'), which provide insurance companies with greater speed, flexibility and scalability, improve response and optimize processes, such as underwriting.

Cloud computing is not so common in the Russian insurance market. But it is clouds that can become the platform for creating the common infrastructure services mentioned above. For example, such services may be interesting in terms of preparing certain types of reporting. Today in Europe, difficult work is underway to form and implement Solvency II requirements and options are being considered in which a common platform will be created to calculate the set of indicators necessary to meet Solvency II requirements. Similar solutions may be interesting in the field of fraud prevention, as well as in terms of ensuring interaction between different market participants.

4. Use a service-oriented architecture instead of a server-oriented architecture. Overly costly and outdated systems are a major barrier to insurers building efficient business processes. To achieve their business goals, insurance companies will have to move from using a server-centric architecture to a service-centric architecture.

Today, the operations of Russian insurers are often supported by monolithic systems that combine the functions of configuring products, charging, accounting for contracts, accounting for receipts and payments, working with compensation payments, settling losses, reinsurance, as well as accounting and reporting. On the other hand, as the market evolves and there is a need for increasingly advanced functionality in individual areas, such as loss settlement and fee management, insurers will have the choice of developing this functionality within the existing monolithic system or buying separate specialized solutions and integrating them with the core system. To solve this problem, service-oriented architecture becomes an important factor.

5. Reflective IT security systems aimed at protecting the most vulnerable areas. The problem of protecting client data has always been in the spotlight of insurers, but now, due to tougher regulation and after a number of widely publicized scandals with data leaks, information protection has become one of the main priorities. As the volume of data grows, it becomes more and more difficult to ensure the proper level of security, and 100% data protection guarantees seem to be an unrealistic prospect. Under these conditions, it is more reasonable for insurance companies to take a selective approach to security, which allows for a differentiated level of protection for different datasets. To do this, insurers need to identify the most vulnerable areas and use technologies to ensure the security of processes, data and infrastructure. Companies are also advised to minimize the impact of the human factor, which is the main cause of leaks and security breaches.

As the application architectures of Russian insurers become more complex (the introduction of centralized systems, specialized applications and integration with partner systems), information security issues will become more and more relevant. Equally important will be aspects related to potential external threats, and problems associated with the possibility of data leakage due to malicious actions of employees of insurance companies themselves.

6. Risk-based approach to protecting sensitive data. As with security, it is almost impossible to guarantee 100% data privacy. However, any privacy violations can have serious consequences. Insurers need to identify the areas of greatest vulnerability and use a risk-oriented approach in working with customer data.

Data privacy issues began to take on special importance for Russian insurers with the adoption of Federal Law No. 152-FZ. Given Russia's accession to the WTO and the gradual tightening of requirements, including those related to working with personal data, Russian insurance companies will be forced to implement a set of measures (both infrastructure and organizational) aimed at protecting confidential data.

7. Social platforms as new opportunities for business analytics and channels of communication with customers. Consumers are increasingly willing to share their experiences with companies on social media. Insurers are taking advantage of this for their own purposes, actively expanding their presence on various social platforms, such as Facebook. The development of social media opens up potential opportunities to increase sales and improve the quality of customer service. Competent communication on social networks allows you to strengthen trust and establish direct contact between insurance companies and their clients.

Russian insurers are taking their first steps on social media. So far, it is difficult to judge the effectiveness of their presence on Facebook and other platforms. Today, this presence is usually limited to providing information. The market has not yet identified the most effective model for harnessing the potential of social media. However, given the rapidly growing popularity of social platforms and the increase in the amount of personal data voluntarily provided by users, interest in the use of social networks among insurers will increase.

8. Improving customer service through the use of mobile, video and gaming technologies. Business process design has always been designed for optimization and cost reduction. In the future, the main factor will be to ensure the best customer experience. Mobile technologies are the main area of ​ ​ development today. According to forecasts, by 2020 the number of mobile phones in the world will increase to 3 billion, and the number of transactions made using mobile devices - up to 450 billion. The proliferation of smartphones and tablets makes insurance companies think about how to use them in internal corporate interaction and in relations with customers. In addition, video and gaming technologies can be used in client service. Video technologies provide visibility, and through gaming applications you can inform customers about new products more efficiently than through advertising and other traditional communication channels.

Many Russian insurers already have mobile solutions that implement the functions of providing information about products, addresses of branches and settlement centers, loss notifications, etc. Obviously, the functionality and demand for these applications will only grow. Products that work on the pay as you drive principle and operate mobile technologies with support/may appear. GPSGLONASS If the GLONASS development program is implemented in full cars and an appropriate "black box" is installed without fail, insurers will be able to obtain a tremendous amount of information that can be used for more accurate charging, taking into account the nature of driving a car, as well as for more effective investigation of accidents and settlement of losses.

Each of the listed trends is important in itself, but in order to maximize the benefits of applying new technologies, insurers must develop an integrated approach. The role of IT managers, who have to develop a full-fledged strategy for responding to market changes, is especially important here. The use of the entire range of technologies will increase both the efficiency of insurance companies and the satisfaction of customers with their services.

Cyberinsurance

2024

The number of cyber insurance contracts has grown by 60% over the past two years

AlfaStrakhovanie notes a significant increase in business interest in cyber risk insurance. Over the past two years, the number of contracts has increased by 60%. More often, requests for this type of insurance coverage began to appear from companies with large data centers (data centers), as well as from state-owned companies. The company announced this on May 28, 2024. Read more here.

TC "Zosod" and "Zetta Insurance" have developed a special offer to protect the owners of an electronic signature

UT "Zosod" and the insurance company "Zetta Insurance" have developed a [1] special offer to protect the owners of an electronic signature. About this CT "Foundation" reported on May 13, 2024. Read more here.

2023

Increase in the volume of insurance premiums in cyber insurance by 20% to 900 million rubles

The total volume of insurance premiums in cyber insurance in Russia in 2023 reached 900 million rubles, an increase of 20% compared to the previous year, when the indicator was measured at 750 million rubles. Such data in February 2024 led to the All-Russian Union of Insurers (SCS).

As RIA Novosti was clarified in the press service of the BCC, the figures presented are an assessment of all policies with elements of cyber insurance. Specialized cyber risk insurance policies are still being implemented no more than 40% of the total statistics, the union added.

The total volume of insurance premiums in cyber insurance in Russia in 2023 reached 900 million rubles

As Kommersant writes in the issue of January 29, 2024, cyber insurance has long been discussed as one of the mandatory conditions for regulating the responsibility of companies for information security.

It is necessary to oblige companies to have financial support to compensate for harm caused to personal data subjects in case of violation of the law. It can be a bank guarantee, an insurance contract, a reserve fund, - said the deputy chairman of the council for the development of the digital economy under the Federation Council Artem Sheikin to the publication.

According to him, by the end of January 2024, the bill is at the final stage of development, it is planned to be discussed with departments and business at a meeting in the Federation Council in February 2024.

Commercial Director of Bi.Zone Konstantin Levin, in a conversation with the newspaper, noted that within the framework of cyber insurance processes, in addition to the insurer and the customer, a third party is needed that analyzes the situation with the client, but these procedures have not been worked out by the beginning of 2024, and there are no assessment criteria.

According to Vitaly But, Vice President and Head of the Information Security Department of the VSK Insurance House, by the beginning of 2024, cyber insurance in Russia is not actively used within the framework of risk management. Insurers, in turn, are developing this direction, offering new products and services for companies from various sectors of the economy, he said.^[3]

Growth of the Russian cyber insurance market by 80% to 1.3 billion rubles

In 2023, Russian insurance companies earned 1.3 billion rubles from the sale of policies that protect businesses from cyber risks. Compared to 2022, the volume of this market increased by 80%. This is evidenced by the data of Promsvyazbank (PSB), published at the end of January 2024.

As Kommersant writes with reference to the vice-president and director of the department for the development of non-banking services at PSB Aleksei Nazarov, most often large clients from the banking sector or industrial enterprises resorted to cyber insurance in 2023 - usually from the fuel and energy complex and metallurgy. In some cases, the insurance included a cyber audit, which is a service for checking the security of corporate IT systems.

Russian insurance companies earned 1.3 billion rubles from the sale of policies that protect businesses from cyber risks

Other market participants are also talking about an increase in demand for cyber insurance. So, according to Zetta Insurance, the number of new requests for cyber risk insurance in 2023 increased 1.5-2 times. Demand is directly proportional to the growth of incidents with data leaks and hacker attacks, according to the company. In 2023, Roskomnadzor discovered 168 leaks (140 in 2022).

Rosgosstrakh notes the demand primarily from the banking sector and telecommunications companies, which are "today more susceptible to attacks," recognizing that in Russia it has not yet become "significant for the market." At the same time, cyber insurance since the end of 2022 has been discussed as one of the mandatory conditions for regulating the responsibility of companies for information security, the newspaper notes.

The Bank of Russia clarified to the newspaper that cyber risk insurance is one of the tasks determined in the regulator's plan of work until 2025, however, "to establish uniform requirements for such an insurance product, insurers must have developed sufficient experience."^[4]

2022

About a third of companies are confident that cyber insurance will help them recover from the information security incident

Only 6% the Russian of companies as of August 2022 insure cyber risks and 21% plan to use the service, which began to gain popularity only in 2017 after a large-scale epidemic. viruses extortioners Some companies believe that the presence insurance will help to recover faster after being implemented attacks and make the company more secure. The rest are not yet ready to implement the service - mainly due to the lack of a budget for it. These data follow from a survey conducted by experts of the company "," RTK-Solar which announced this on August 11, 2022. Almost 400 respondents took part in the study, including representatives,,,,, and industries financial industries transport retail others ENERGY INDUSTRY. public sectors

As of August 2022, cyber risks are insured, as a rule, by large corporations and organizations with significant budgets and distributed ones. IT infrastructure Almost 2/3 of respondents already working with the service are representatives IT and finance, that is, the most digitalized areas. At the same time, traditionally conservative industries also have such companies. So, 16% of respondents using the service account for and, oil and gas and the electrical power industry same amount for. state authorities

Cyber ​ ​ insurance makes the company more secure - this is the opinion of 61% of those who are interested in the service (already use or plan). 36% of respondents are sure that the payment will help to recover faster after the incident. Also, 2/3 of the respondents believe that their company has become much more attractive (for customers, partners, employees) after the introduction of cyber insurance.

Respondents who do not yet plan to insure cyber risks are the majority. The main barrier 33% of respondents call the lack of budget for this service and its high cost. Moreover, almost 70% of respondents, in principle, are not ready to include information security insurance in their expenses. The financial aspects are mainly indicated by representatives of small and medium-sized businesses. For large companies, the key problem was the management's misunderstanding of the need for such insurance. Other reasons for failure include internal company regulations and a lack of understanding of the value of the service to business.

9% of respondents admitted that at the time of the cyber incident, they regretted that they did not have a cyber policy, thanks to which they could recover much faster.

As you can see, there is interest in cyber risk insurance from organizations. But there is a certain distrust of this service and unwillingness to spend the budget on a tool whose benefit is incomprehensible. However, it's a matter of time, said Darya Koshkina, head of cyber threat analytics at RTK-Solar. - The introduction of the insurance service should increase spending on information security by 10% - this is the opinion of the majority (33%) of those surveyed by us. 15% of companies are ready to budget an additional 20%. However, the policy alone will not help to cope with a cyber attack - before going into insurance, you need to "bring your information security protection to mind." Investments in cyber protection and insurance must be balanced - otherwise such a financial instrument will not be justified.

AlfaStrakhovanie and Fly Drone launch online drone insurance

AlfaStrakhovanie"" and the company Fly Drone"" entered into an agreement on the launch online insurance service of flights (unmanned aircraft BVS). Owners and operators drones will be able to protect their civil liability in case of force majeure and minimize financial losses. AlfaStrakhovanie announced this on June 29, 2022. More. here

2021

Increase in demand for cyber insurance by 60%

The number of requests for quotations and insurance of cyber risks from large and medium-sized businesses in 2021 increased by 60% compared to 2020, the AlfaStrakhovanie study showed, the results of which the company shared on February 4, 2022. This is due to the increase in resonant cases of cyber attacks in Russia and the world and the increased requirements of large companies for their suppliers to protect confidential information.

The greatest interest in protecting such risks is shown banks financial by sector companies, companies engaged e-commerce in and providing, IT services as well as large industrial enterprises that actively automate their own. business processes

As a rule, they choose programs with coverage for damage to the company as a result of interruption of activities and provision of services, as well as responsibility to customers.

Among the key insurance claims faced by cyber risk-insured customers are:

• DDoS attacks on web applications,
• hacking the company's website,
• phishing and further host encryption,
• transition to an infected resource and further encryption of hosts,
• hacking the infrastructure by cybercriminals with further disruption of equipment, mail, business applications.

Over the past three years, cases of resonant cyber attacks have become more frequent - both in Russia and abroad. The constant threat of their repetition fuels business interest in protecting cyber risks. Also, one of the demand drivers was the federal law "On Information, Information Technologies and Information Protection" from 27.07.2006 N 149-FZ. More and more companies understand the need to take IT risks into account when building risk management policies. In addition, large companies began to oblige their suppliers to issue cyber risk insurance contracts, "said Ekaterina Kryuchkova, head of the financial risk insurance department at AlfaStrakhovanie. - Insurance protection will help reduce the amount of financial damage to the company as a result of a cyber incident and promptly restore the company's activities.

Accenture to offer cyber insurance with Generali and Vodafone Business

Accenture will offer cyber insurance in conjunction with Generali and Vodafone Business. Accenture announced this on December 27, 2021. Read more here.

President of Uzbekistan signed a document on the digitalization of the insurance market

President Shavkat Mirziyoyev on October 23, 2021 signed a decree aimed at developing the sphere insurance and digitalizing it. More. here

83% of Russians began a thicket to use insurance online services against the background of a pandemic

On June 1, 2021, information appeared that 83% of Russians began to cha­shche use online insurance services amid the pandemic. Such data are given according to the results of a study conducted by the All-Russian Union of Insurers (BCC) and AS & M. Over the past 12 months, 74% of respondents to the total number of consumers who received insurance services over the past year have used digital insurance services.

The most popular online insurance services were the purchase of a new policy and the extension of the insurance contract (used by 51% of respondents). The demand is followed by an online settlement without a visit to the office and an application for an insured event (29% and 25% of respondents, respectively).

The results of a consumer survey demonstrated that the pandemic, combined with the efforts of insurance companies, has become a powerful driver of digitalization in the field of online insurance. More than 60% of respondents are aware of digital insurance services (the exception is online settlement, with which approximately 50% are familiar).

There is a significant increase in trust on the part of the target audience in digital insurance services and the willingness to completely switch to online service. All parameters of the Digital Perception group (trust in digital services of the UK, satisfaction with the use of digital services in insurance and readiness to switch to online service) increased by 5 percentage points compared to the first half of 2020: from 75% to 80%, from 80% to 85% and from 73% to 78%, respectively.

The survey was conducted by the ICS and AS&M as part of a project to calculate the Digital Insured Index (DCI) - the first analytical indicator in Russia, assessing the level of digitalization of products and services of insurance companies for customers - individuals. In the second half of 2020, compared with the first, the ICZ increased by 1 percentage point. - from 43% to 44%.

The ICZ appeared just a couple of days after the president Russia Vladimir Putin instructed the government of the country to approve the digital transformation strategies of 10 key sectors of the domestic economy and the social sphere.

The DPI is calculated on the basis of three groups of parameters reflecting the interaction of insurance companies with retail customers in the digital environment: Digital Presence (digital presence), Digital Practice (digital practice) and Digital Perception (digital perception). Digital Presence assesses the intensity of interaction between insurance companies and customers in digital sales and service channels, Digital Practice takes into account the possibility of online interaction (not only policy purchases, but also insurance claims settlement), and Digital Perception reflects the subjective perception of consumers' experience of interaction with digital services (based on population surveys).

As noted by Marina Belova, CEO of AS&M, the trend of the transition of insurance services online will continue, but the pace of this process is changing.

"We do not exclude that after the abolition of forced isolation in the first half of 2021, we will observe some slowdown in digital transformation or even retrograde processes. It is important to note the fact that there are companies in the industry that have already advanced far along the path of digital transformation, and there is a group of companies that are taking the first steps, and their potential for growing digital services has been exhausted by no more than 10-15%, "Marina Belova emphasized.

According to AS&M specialists, judging by two studies in 2020 and 2021, the share of digital services will gradually grow by 2 percentage points. for the half year. This growth is likely to continue until the share of online services reaches the level of pre-saturation. A certain share of consumers, maybe 20%, and maybe 30%, will use traditional storefronts and options for interacting with insurance companies in the foreseeable future.

According to AS&M, the greatest potential is for online settlement of insurance claims. The consumer is not used to such a practice and doubts its effectiveness. In order for online settlement to become the industry's de facto standard, pioneers in this area need to provide customers with a vivid positive user experience.

The AS&M survey showed that there are some specific products that at the moment were not very in demand. For example, travel insurance abroad (policies that were issued almost exclusively online).^[5]

2020

Increase in demand for cybercrime insurance by five times

Demand for insurance from cybercrimes in 2020 increased fivefold compared to 2019.

The number of policies purchased by companies approached a thousand. This became known on April 10, 2021, according to Svetlana Gusar, vice president of the SCC, who also added that as of April 2021, less than 10 organizations offer these services. It is also specified that the greatest demand was recorded from credit institutions, as well as from companies whose activities are related to the IT industry.

Thus, Sberbank Insurance (SberStrakhovanie) notes a noticeable increase in interest in such insurance products. In particular, experts associate this with the transition of companies to remote work. At the same time, it is noted that cyber insurance is quite expensive, since banks and insurance companies cannot yet accurately determine the potential losses of companies from cyber purchases.

As reported, the minimum price of the policy is from 5 thousand to 600 thousand rubles per month, and the amount of coverage is in the range from 1 million to 150 million rubles, depending on the conditions^[6].

VSK and Angara Professional Assistance launched a cyber insurance product

Insurance House VSK and Angara Professional Assistance have launched a cyber insurance product based on Kaspersky Lab technologies. This was announced on October 26, 2020 by Angara Technologies Group.

The intelligent basis of the information security service is Kaspersky Lab's software solution for protecting against complex and unknown threats - Kaspersky Endpoint Detection and Response (Kaspersky EDR), as well as the Angara Cyber ​ ​ Resilience Platform (ACRP), designed to monitor, investigate and analyze cyber threats. Read more here.

The branch of Ingosstrakh in the Astrakhan region entered into the first cyber risk insurance contract

The branch of Ingosstrakh in the Astrakhan region concluded the first contract for insurance of sites against cyber risks. The Cyber ​ ​ Risks (Sites) insurance program provides protection against loss of significant information on the site and loss of access to it as a result of a cyber attack or virus infection. This was announced on September 28, 2020 by Ingosstrakh. Read more here.

Ingosstrakh introduced a cyber insurance product

On April 20, 2020, Ingosstrakh introduced a product - a cyber risk insurance policy developed in partnership with Informzaschita. Read more here.

2019

Sberbank Insurance insured Dodo Pizza against cyber risks

On July 11, 2019, Sberbank Insurance (SberStrakhovanie) announced that it had insured Dodo Pizza's information systems and resources against cyber risks, including software, corporate email, Web site, cloud service and databases.

SK Sberbank insurance"" entered into an agreement with Dodo Pizza under the MyCyberInsurance Optima program. The program provides for insurance of losses from a break in economic activity and from unauthorized debiting of money from a client's account as a result of a cyber incident, as well as insurance of civil liability for harm that can be caused to third parties as a result of a cyber incident.

According to, in to data FinCERT 2018, the number of unauthorized transactions from the accounts of legal entities increased 7.3 times to more than 6 thousand, and the amount of theft from cyber attacks amounted to about 1.4 billion rubles. These are very impressive numbers, so one of the key tasks of the business is to protect information systems from cyber threats, and not only by optimizing and improving IT technologies, but also by insurance against cyber incidents,

Dodo Pizza is an international pizza chain. We use information technology to improve processes and make a stable quality product. At the heart of our network is the cloud management system of the Dodo IS pizzeria. This is an ERP system that covers all aspects of our business: customer orders, a mobile application and a website, processes for preparing pizza in a pizzeria, the work of the cash register and accepting payments, all the operational work of a pizzeria and much more. This is a very large part of our business and it is important for us that our information system works smoothly, so we invest in its development, including IT protection, and now also in insurance protection,

Sberbank Insurance: Cyber ​ ​ insurance market may reach 8-10 billion rubles by 2025

On May 24, 2019, the company Sberbank Insurance (SberStrakhovanie)"" announced that Russian insurance market cyberrisks it could reach 8-10 billion rubles by 2025. The main incentives for the development of this segment will be the growth of cyber threats against the background of the development of digital technologies, improving legislation in the field data protection and increasing the information culture of citizens and entrepreneurs.

According to the company, the number of cybercrimes Russia in is constantly growing. By, in to data MINISTRY OF INTERNAL AFFAIRS 2018 there were 92% more of them than in 2017. According to the data, in FinCERT Bank of Russia 2018 there were 417 thousand unauthorized operations payment cards using a total of 1.3 billion rubles. This is 31.4% more in quantitative and 44% more in monetary terms compared to 2017. According to Sberbank estimates, by 2022, 1 trillion devices will be connected to the worldwide network, and the damage from cyber attacks may global economy grow to $8-10 trillion per year.

The main risks to business data breach are production downtime due to DDoS the attack, impact harmful viruses and use of social engineering methods by attackers. According to expert estimates, the average damage from a cyber incident for large companies is 11 million rubles, for small and medium-sized businesses - 1.6 million rubles. Faced with cyber incidents, companies are increasing budgets by. safety In addition, the demand for protection against cyber threats with help is gradually beginning to form. We insurance expect an "explosive" growth of the cyber insurance market in the five-year term, by 2025 the share of this segment in the all-Russian non-life insurance fees may amount to about 0.5-0.7% Vladimir Novikov, Risk Director of Sberbank Insurance

The volume of the Russian cyber insurance market for May 2019 is measured in tens of millions of rubles, but in the coming years, analysts at Sberbank Insurance expect the rapid development of this segment. The main contribution to the formation of "fashion" will most likely be made by large companies, but the bulk and demand will be formed by small and medium-sized enterprises, as well as individuals - everyone who uses a smartphone.

SK Sberbank Insurance was the first in Russia to offer mass products for cyber risk insurance. So, in 2017, the company included in the insurance package for small businesses the risk of a break in production as a result of cyber attacks. At the end of 2018, the company offered this type of insurance to individuals, including the risk of cyber threats in the bank card insurance product. For six months of action, such policies have already been issued by about 2 million clients.

2018

AlfaCyber - Cyber Risk Insurance Policy

In February 2018, AlfaStrakhovanie, realizing the importance of insurance protection against cyber operations, launched the AlfaCyber product on the Russian market . A cyber protection policy will minimize the financial and information risks of almost any business or company that will be subjected to cyber attacks in the future.

Cyber threat insurance, ATM and cryptocurrency attacks

Cybersecurity trends in 2018 were presented at the Cyber ​ ​ Security Forum, which takes place in Moscow on February 6, 2018. The event is organized by ROCIT - Regional Public Center for Internet Technologies, RAEK and Digital October^[7].

The first trend: the emergence of new viruses and the expansion of the arsenal of cybercriminals through the use of new technologies

• Cybercriminals will attack legitimate software developers more often than end targets. Large companies with reliable and multi-layered cyber defense are at risk. In such cases, it is much easier to use an intermediary, which can be a manufacturer of popular programs used in the corporate segment.
• Criminals will continue to actively distribute virusesencoders-. Many attacks with their help can be aimed at industrial systems.
• Another attractive target for hackers is personal data. They are characterized as "new oil." In this case, Big Data will be used in the attacks themselves - for more targeted access to the user.
• The difficulty of detecting and removing malware will also increase due to the use of DNS, encryption, confusion and other technologies.

Second trend: infrastructure cyber threats

• As part of this trend, attacks on software interfaces, massive hacks of routers and modems, hacking of ATMs and POS terminals, strengthening control over the Runet infrastructure, creating a centralized communication network management system, as well as attacks on cloud services are predicted.

Third trend: attacks on cryptocurrencies

• For these purposes, cybercriminals will actively use botnet networks for mining, as well as conduct attacks on exchanges and users.

Fourth trend: changes in legislation

• In 2018, a law on the security of critical information infrastructure came into force. Thus, the priority trend of companies will be an increase in cybersecurity costs related to KII, which will "provoke" a further technological "arms race."
• The authors of the study emphasize that the Central Bank is becoming a regulator in the field of information security for financial organizations.
• In addition, from May 25, 2018, the European Regulation GDRP (General Data Protection Provisions) will begin to apply, which will inevitably lead to an increase in the costs of Russian companies whose activities are associated with EU member states.
• Also, cybersecurity will be affected by the entry into force or transfer of the "Spring Law," import substitution policy and strengthening requirements for information protection licenses.

The fifth trend: social aspect

• As part of this trend, the development of the idea of ​ ​ insurance against cyber threats is noted. Companies will begin to view cyber threats as one of the key commercial risks. As a result of the change in legislation, companies will more often audit the security of their automation systems, assess information security risks and look for ways to reduce or transfer them. Financial institutions and technology companies will be the first to implement insurance for such risks.
• Manipulation and hacking of media and social media is also expected to increase in order to profit from retail fluctuations provoked by informational fakes.
• At the same time, Internet users will remain a "weak link" and one of the main tools of cybercriminals. Most viruses enter corporate networks through email and opening files and links by employees.

For the first time in Russia, electronic wallets were insured against hackers

MTS was the first in Russia to insure the electronic wallets of its clients against hacker attacks.

'The protection of electronic payment tools is becoming more urgent. Digitalization penetrates all spheres of human life and fraud shifts from the physical world to the virtual one. The threat of cyber risks is increasing, therefore, I am sure we managed to offer a timely solution demanded by the market, "said Igor Fatyanov, CEO of Zetta Insurance

.

Insurance provides compensation for the theft of funds by hackers up to 10 thousand rubles. Such insurance works only in Russia in the MTS Wallet service. Insurance does not apply to other services, but other players in the market can also use the practice.

2017

Development of cyber risk assessment system AIG CyberEdge

In December 2017, AIG announced the launch of a system that evaluates customer cyber risks and provides more advanced analysis of hacker insurance. Since November 2017, AIG underwriters have been using a computer analysis method that combines information from a new insurance application developed for the process and data on current cyber threats to generate estimates on various co-factors.

Main article: AIG CyberMatics CyberEdge Cyber Risk Insurance

Standards for information risk insurance services will appear in Russia

Within the framework of the Digital Economy program, by the second quarter of 2020, it is planned to develop industrial standards and other regulatory documents for information risk insurance services. It is proposed to entrust this task to the Central Bank of the Russian Federation, the Ministry of Finance and the self-regulatory organization "Association of the Guild of Actuaries."

The draft action plan of the Digital Economy program under the Information Security section also provides for a number of measures aimed at popularizing insurance mechanisms for protecting information resources of enterprises. According to preliminary estimates, the federal budget expenditures on the popularization of cyber insurance will amount to 200 million rubles. The document was developed by the competence center in this area, created on the basis of Sberbank.

The content of the insurance service for cyber insurance is not standardized, in world practice it varies from country to country and depends on the legislative environment, the document says. - Tracing paper from an American or Western European product practically does not meet the needs of enterprises in Russian jurisdiction. Accordingly, there is a risk of a gap (gap) between the insurance coverage offered by international insurers and the risks of domestic companies.

By September 2018, it is proposed to develop rules for collecting, processing and transferring information on information risk insurance contracts, insurance events and payments to a single database. A register of such contracts should also be maintained. According to the authors of the document, statistics will be required to charge cyber risk insurance products.

It is planned that by the beginning of 2019, cyber risk insurance will be attributed to the cost of accounting. The corresponding amendments are proposed to be made to Art. 263 of the Tax Code, including in the costs of compulsory and voluntary property insurance the costs of cyber risk insurance. In particular, the responsibility of personal data operators and interruptions in activities as a result of cyber risks should be taken into account.

As the authors of the document explained, the attribution of insurance costs to cost in accounting will allow you to insure information risks from cost, and not from profit. To this end, it will be necessary to amend the insurance legislation in terms of allocating cyber risk insurance into a separate type of insurance and equating information risk insurance with insurance of "physical" assets of the enterprise.

For personal data operators, it is proposed to normatively consolidate the obligation to have a financial guarantee of responsibility in accordance with the class of the information system for the processing of personal data. Own funds, a bank guarantee and an insurance policy can be used as a financial guarantee.

In addition, it is planned to introduce a standard for mandatory information security audit for enterprises of certain sectors of the economy (for example, financial and banking sectors, strategic industries - metallurgy, mechanical engineering, shipbuilding, aircraft industry, etc., as well as airports, train stations, ports, etc.).

In particular, it is proposed to introduce requirements for compulsory insurance of cyber risks in these industries, while the list of risks should include risks of interruption in activities as a result of the implementation of cyber threats. At the same time, it will be logical to introduce a requirement from the Central Bank for insurance companies to reinsure cyber risks in the RNPK, the authors believe.

It is expected that through the introduction of these measures, insurance will be carried out on the basis of a risk assessment, and the availability of an audit report will simplify and speed up such a risk assessment. In addition, mandatory cyber insurance for certain industries will create an appropriate market.^[8]

Mains: The cyber insurance market will reach 1 billion rubles by 2025

In November 2017, the insurance broker Mains Insurance Brokers & Consultants (Maines Insurance Brokers and Consultants, MSBK), Allianz and Infosecurity presented a forecast for the development of the cyber risk insurance market in Russia. According to experts, by 2025, insurance premiums in this market will reach 1 billion rubles.

Cyber incidents

In 2017, in the European Region, which includes Russia, cyber risks ranked second among the most serious risks to enterprises. This is stated in the annual Allianz Risk Barometer study, which is conducted among directors and risk managers of large enterprises.

In 2016, Russia ranked second in terms of the number of registered information leaks (213 registered cases of leakage of confidential information and 70 million attacks on Russian information resources). On average, one stolen entry costs the company $158, and in the future this figure may increase to $200-300. The damage from cyber attacks in Russia in 2015 amounted to 203.3 billion rubles (0.25% of GDP).

Among the high-profile cyber attacks in Russia in recent years are personal data leaks and SMS from the mobile operator Megafon in 2011, attacks on banks for extortion (an incident with Bank St. Petersburg) in 2016 and 2015, as well as attacks by the WannaCrypt0r 2.0 virus. In March 2017, the virus penetrated a number of ATMs, enterprises (Megafon, Russian Railways), banks (Sberbank) and state institutions (Ministry of Internal Affairs).

The affected organizations were not immune to cyber attacks. What could be the amount of potential damage? According to the insurance company Allianz, large companies on average spend about 11 million rubles to eliminate the consequences, medium and small - 1.6 million rubles. And this is without the size of a direct loss.

Against the backdrop of increasing threats, investment in information security is desperately needed. At the same time, you need to remember that preventive measures do not give a 100% guarantee, which is why it is important to think about minimizing possible damage if the attack could not be stopped. For such cases, there are cyber risk insurance products.

The volume of insurance premiums in Russia in this market does not exceed 10 million rubles. However, according to Mains Insurance Brokers & Consultants, exponential market growth will begin in 2019, and in 2025 its volume will reach 1 billion rubles.

Importantly, there is a direct relationship between the rate of leak detection and neutralization and the cost of settlement. Every year, such costs are growing, which indicates the need to invest in data protection technologies and develop internal expertise to reduce response time and leak detection, as well as be sure to compensate for the cost of attracting third-party experts to reduce the amount of loss.

Cyber Risk Insurance Legislation

In Russia, legislation in terms of violation of the safety of data is poorly developed. The amount of fines varies from 1 to 50 thousand rubles. However, the situation should change in the coming years. Within the framework of the Digital Economy program, the state is implementing measures aimed at forming a civilized cyber insurance market in Russia. One of these measures may be the mandatory purchase of a cyber risk insurance policy.

"Legislative bodies, both in Russia and abroad, are showing great interest in regulating the online environment and content - confirmation of this is the" Spring Law "and GDPR, which should enter into force in the summer of 2018. Simultaneously with the tightening of requirements for the work of companies, these laws increase the value of personal data themselves. Even if cyber risk insurance does not become mandatory, there are more and more legislative prerequisites for voluntary cyber risk insurance, "comments Vadim Mikhnevich, Deputy Director of the Allianz Financial Line Insurance Department

.

Large European banks began to actively insure capital against cyber attacks

Increasingly, banks are turning to insurance companies in order to protect their capital from operational risks, including cyber attacks and impure employees. Representatives of insurance agencies said they would be able to help creditors, in the form of an additional level of expertise on their part.

After a series of expensive lawsuits and interruptions in the IT infrastructure, banks such as Credit Suisse, Deutsche Bank and Lloyds began to look for ways to minimize costs for such episodes. Partial coverage of risks by insurance companies was recognized as the most optimal way out of the situation.

Most such insurance contracts are drawn up privately, and details are not published anywhere. However, the sale of CHF 220 million worth of bonds by Credit Suisse Bank to cover possible operational risks attracted public attention last year.

Bond buyers were given favorable terms with more than 4% per annum, but they may also suddenly lose their investments, for example, if bank employees are charged with committing malfeasance or a cyber attack is committed on the bank.

Insurance company Zurich Insurance took over the coverage of potential losses.

Insurance companies hire operational risk specialists who have experience in large banks to better understand the overall picture and adequately assess the situation in financial institutions.

The Basel Committee on Banking Supervision defines operational risk as "the risk of loss as a result of inadequate or improper actions in dealing with internal processes, personnel, systems or as a result of external factors." The definition includes cyber attacks, IT infrastructure outages, industrial espionage and financial fraud.

Banks first began looking at operating risk insurance ten years ago, just before the onset of the financial crisis. Then the discussion of this issue was postponed until better times. And so, according to insurance agents, last year several banks again began to show increased interest in this topic^[9].

Compulsory cyber risk insurance may appear in Russia in 2022

Russia In plan to create a large-scale market for insurance against cyber risks. The working group is headed by. Sberbank The policy information security may become mandatory from 2022 for the Ankov sphere, airports and train stations, as well as for the metallurgy, mechanical engineering, shipbuilding and aviation industries. The newspaper "" writes about this Businessman with reference to the program action plan.

In addition, an industrial standard for mandatory information security audit will be introduced in Russia. It will spell out the conditions for insurance and the collection of statistics, models of actuarial calculations of tariffs.

To implement the project, it will be necessary to amend the Law on the Organization of Insurance Business - add a new type of insurance. At the same time , project costs will have to reduce the tax base, so amendments will also be made to the Tax Code.

See also Cybercrime and cyber conflicts: Russia.

2011

In Russia, information security risk insurance is a relatively new and largely low-demand area. In Russia and abroad, the most common insurance program, which as one of the components includes insurance against electronic and computer crimes, is currently the program of comprehensive property insurance of banks (Bankers Blanket Bond, BBB). At the same time, 80% of losses for this type of insurance are incurred by banks due to disloyalty of personnel, expressed in the theft of funds from bank accounts using computer systems. Since in this case it is often difficult to quickly determine whether the bank was attacked by cybercriminals from inside its IT infrastructure or outside, banks often practice, along with a BBB policy, to purchase Computer Crime policies that insure against external cyber attacks.

There are also unique projects of insurance programs developed in our country. The authorship of one of them belongs to Allianz. It offers remote banking insurance against damage during attacks not only on information systems of RBS banks, but also on client ones. In practice, there are already precedents of insurance payments for such insured events.

Allianz representatives expect that since the beginning of 2013, interest in shifting RBS risks to insurers will increase due to the onset of mandatory for banks under the law "On the National Payment System" to reimburse RBS customers for damage from theft of funds in bank accounts from January 1 of the new year.

The cost of insurance, both under the BBB and Computer Crime programs, and in general, is determined by the terms of insurance and the results of the insured's pre-insurance examination. The examination is carried out either by independent experts or by experts of the insurance company. During the audit, experts identify such indicators as the number of employees of the insured, loss statistics, the organization of access to certain information blocks, the means of protection used, certificates of compliance with current regulatory requirements, etc. Based on the results of the audit, the cost of insurance and the insured amount are determined.

The resulting document regulating the relationship between the insured and the insurer is the insurance contract - the insurance policy. The higher the security of its IT resources is demonstrated by the insured (including using documents confirming compliance with current standards and laws), the cheaper insurance costs him (including the cost of the audit itself). Currently, each Russian insurer has its own criteria, which it uses when assigning an insurance amount and an insurance premium.

Insurance of information security risks is mainly carried out by banks and representative offices of foreign companies that comply with the requirements of corporate standards. At the same time, the range of information security risks (even in the banking sector alone) and losses from them are much wider than those covered by BBB and Computer Crime policies.

The closeness of the activities of Russian financial institutions prevents the insured from conducting a mandatory and sufficiently detailed questionnaire of potential policyholders to find out what and to what extent information security risks they are subject to. Practice shows that as soon as such a questionnaire is approved by the information security service of the bank, it falls under the cloth and the insurance transaction often 'dies'. Experts argue that only providing insurers with the necessary information will be able to turn the tide for the better in the field of insurance of banking information security risks.

The bulk of insurance companies operating in Russia are not engaged in insurance of risks associated with the use of IT, but are focused on those segments where insurance amounts and the amount of coverage of risks are much easier to calculate.

Those few insurers who work in Russia in the field of information security risk insurance use mainly foreign experience to determine the conditions of insurance. Thus, in international insurance practice, the audit is paid by the one who initiates the insurance contract. There are frequent cases when the insurer allocates about 2.5% of the insurance premium for the audit of the insured.

In 2011, the non-profit partnership "ABISS Information Security Standards User Community" was formed in Russia. One of the tasks of the information risk insurance committee created within the framework of the ABISS is to analyze legislation, standards and practice of their application in order to develop proposals for improving the regulatory framework in the field of information security risk insurance. Among other functions of the committee, explanatory work in the professional environment on the practical application of recommendations and rules for insurance of information security risks, initiating independent examinations of insurance events, developing general recommendations for drawing up rules governing the relationship between the insurer and the insurer in the field of insurance of information security risks, starting with the contents of the questionnaire, which begins the audit.

The Bank of Russia Standard for Ensuring Information Security of Organizations of the Banking System of the Russian Federation (STO BR IBBS) recommends insuring part of information security risks. Since the number of cases related to false payment documents is multiplying in Russian courts, electronic payment systems, the amount of amounts stolen using IT is growing, and the consideration of such cases stretches from six months or more, you can expect, that the recommendations of STO BR IBBS in terms of the use of information security risk insurance as a compensation mechanism, shifting the severity of litigation onto the shoulders of the insurer, an increasing number of Russian banks will follow. Experts also expect that the range of possible insurance cases in the field of information security will expand, extending to support the availability of IT services, ensuring the requirements of regulators, etc.

Telematic solutions in auto insurance

2021: Lada Granta sales start with telematics evaluating driving quality

On May 25, 2021, AvtoVAZ announced the start of sales of the Lada Granta car, equipped with the Lada Connect telematics platform, which will allow neat drivers to save on insurance. The corresponding smart insurance programs - UBI (Usage-based insurance, based on data on the actual use of the vehicle) were launched by Ingosstrakh, AlfaStrakhovanie, Consent, Rosgosstrakh and VSK. Read more here.

2015: Data from J'son & Partners Consulting

The auto insurance market is undergoing major changes. The traditional risk-based insurance model, where driver demographics such as gender, age, solvency, driving experience are taken into account, is supplanted by a new insurance model where risk is calculated based on each customer's individual driving style. This type of insurance is called "smart" insurance or "insurance based on actual use" (Usage-Based Insurance, UBI), which helps drivers reduce insurance premium costs, monitor the safety of their driving, and insurance companies more accurately and efficiently calculate the cost of an insurance premium, assessing risk with minimal errors, as well as reduce the number of accidents^[10]

"Smart" insurance helps drivers reduce the cost of insurance premiums, breaking the prevailing stereotypes about driving style, depending on socio-demographic characteristics. For insurance companies, a departure from the traditional model will make it possible to more accurately and efficiently calculate the cost of the insurance premium, assessing the risk with minimal errors.

Among the main benefits of smart insurance for insurance companies:

• Acquiring competitive advantages, increasing customer loyalty and service satisfaction;
• Improving operational efficiency;
• Minimizing insurance fraud

The main benefits of smart insurance for customers/buyers of the insurance policy:

• Economic benefit and increase of own security;
• Multifunctionality of telematic equipment.

From a technological point of view, one of the main elements of the smart car insurance system is the telematic module. This equipment collects data on driving style by measuring the speed of movement, angle and sharpness of maneuvers and other parameters. The information received is stored in the company database, on the basis of which the decision on the price of the insurance policy is made.

The entire range of existing telematics modules used for smart car insurance can be divided into the following types:

• devices connected to the diagnostic connector of the car (OBD-dongles);
• telematic modules embedded by the vehicle manufacturer (OEM-devices);
• windscreen vibration response modules;
• smartphones (some modern models smartphones in combination with specialized applications can be used as independent telematic modules);
• "black boxes" (this concept includes all types of telematic modules installed in a vehicle that do not belong to the above).

The largest share of devices in the segment of insurance telematics in the world belongs to OBD-dongles (in 2016, according to Ptolemus Consulting Group - 56%).

Global Smart Insurance Market

According to Berg Insight, in 2015 in Europe and North America there were 11.6 million smart insurance policies (5.3 million in Europe and 6.3 million in North America), in 2015-20. European and North American markets will reach 25.8 million and 42.1 million, respectively.

Smart Insurance Market Players

The value chain of the smart insurance policy covers several industries: insurance companies, suppliers of telematics equipment in the insurance sector, mobile operators, as well as car manufacturers.

Insurance companies interact with all parts of the value chain and are closest to the end consumer. They work closely with telematics equipment providers in the field of insurance both directly and through mobile operators.

Insurance companies

• In the world: Progressive, Allstate Corporation, Liberty Mutual idr.
• In Russia: Alfastrakhovanie, Ingosstrakh, Liberty Insurance, etc.

Telematics Service Providers (TSP)

• In Russia: 3S-Telematica, SpaceTeam, etc.

Technology Providers (TTP, Telematics Technology Provider)

• In the world: MetaSystem, Xirgo and Danlaw, etc.

Mobile operators

• In the world: Telefónica, Verizon, etc.
• In Russia: MTS, VimpelCom.

Car manufacturers

• In the world: BMW Group, Fiat, Citroen, Renault-Nissan-Mitsubishi, etc.

Russian smart insurance market

The growth of the Russian smart insurance market is characterized by a low pace, which is due to the unfavorable economic situation, which caused a decrease in the Russian auto insurance market in 2016 in both physical and value terms. In 2017, negative dynamics were overcome, but at the same time there was a decrease in the average insurance premium of auto insurance and the total volume of premiums.

Insurance market participants are forced to look for new ways to develop, optimize costs and increase profitability. A significant impetus to the smart insurance market can be given by the use of modernized ERA-GLONASS terminals and built-in solutions from automakers, as well as the active use of mobile applications replacing OBD-dongles, black boxes and other telematic devices.

In the future, 5 years, the penetration of "smart" policies in the aftermarket segment can reach 350 thousand (no more than 10% of the number of existing auto insurance policies), and due to the use of built-in telematics solutions based on ERA-GLONASS (including in the compulsory insurance segment) - 3.25 million.

Among the growth drivers of the smart insurance market:

• The possibility of providing additional services, for example, antitheft, E-Call, B-Call and other services with added value;
• The general global trend towards an increase in the number of introduced telematics solutions in auto insurance.

J'son & Partners Consulting considers the main barriers to the development of the smart insurance market in Russia:

• Waiver of any type of voluntary insurance due to a decrease in disposable income;
• Conservativeness of policyholders, distrust of insurance companies, concerns about data privacy.